Analyst Upgrades: Amazon.com, Inc., Ross Stores, Inc., and Yamana Gold Inc.

Analysts upwardly revised their ratings and price targets on Amazon.com, Inc. (AMZN), Ross Stores, Inc. (ROST), and Yamana Gold Inc. (USA) (AUY)

Mar 2, 2016 at 9:11 AM

Analysts are weighing in on e-commerce king Amazon.com, Inc. (NASDAQ:AMZN), discount retailer Ross Stores, Inc. (NASDAQ:ROST), and commodity stock Yamana Gold Inc. (USA) (NYSE:AUY). Here's a quick roundup of today's bullish brokerage notes on AMZN, ROST, and AUY.

BMO initiated coverage on AMZN with an "outperform" rating and a $700 price target, representing record-high territory for the stock. The shares fell just shy of that level in late December, when they hit an all-time best of $696.44. After pulling back to its 60-week moving average amid broad-market headwinds in mid-February, Amazon.com, Inc. took a bounce off this rising trendline and is now trading at $579.04 -- and up another 0.6% pre-market. If the stock can sustain this rebound, it could benefit from an unwinding of long put positions. Options traders have bought to open 1.13 puts for every call during the past 10 days at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). The corresponding put/call volume ratio ranks in the 92nd percentile of its annual range, indicating a greater-than-usual preference for bearish bets over bullish.

ROST is charging higher ahead of the bell, after the company reported better-than-expected fourth-quarter earnings and sales. The news has been met with cheers on the Street, where MKM upped its opinion to "buy" from "neutral," while BofA-Merrill Lynch, Deutsche Bank, and Wedbush raised their price targets. Of course, optimism is pretty common among analysts tracking Ross Stores, Inc. The stock currently boasts 10 "buy" or better ratings, versus six "holds" and not a single "sell." Given the earnings results and upbeat analyst reaction, ROST has added 2.3% in electronic trading following last night's settlement at $56.23, and could take out its Feb. 2 record high of $57.19 this morning.

AUY is higher in pre-market trading, after receiving a price-target hike to $2.75 from $2.50 at RBC. The upward momentum has been building on the stock since it hit a 12-year low of $1.38 in mid-January, almost doubling since then at $2.73 -- as shares of gold miners take off. Not surprisingly, traders have been buying to open calls over puts at a rapid-fire rate in the past month. Yamana Gold Inc.'s 20-day ISE/CBOE/PHLX call/put volume ratio sits at a top-heavy 7.21.

Sign up now for Schaeffer's Opening View newsletter to get a head start on all the major pre-market news!

Follow @Schaeffers

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!